While many businesses, including commercial landlords and tenants, are working together to find a way through the pressures caused by COVID-19, the Government are supporting stability by extending the timeframes required before landlords can cancel leases and mortgagees can exercise their rights to sale or repossession.

The Government will extend the current 10 working day timeframe that commercial landlords may cancel the lease to 30 working days.  This will be for both the period the tenant is in arrears before the notice is given, and for the period to remedy the breach.

These changes would still allow landlords to cancel leases and mortgagees to exercise their powers during the period that an epidemic notice is in force, but would allow more time for breaches or defaults to be remedied.

The Government will also extend the timeframes for lenders from 20 to 40 working days for mortgaged land, and from 10 to 20 working days for mortgaged goods.  This will apply to commercial mortgages and home loans.  However, the already announced mortgage deferrals are likely to be the first port of call for residential borrowers.